Discussion and Working Papers:
Measuring quality of life under spatial frictions, submitted
(with Gabriel M. Ahlfeldt, Duncan Roth and Tobias Seidel)
Berlin School of Economics Discussion Paper No. 57, 12/2024: Discussion Paper
CEP Discussion Paper No. 2061, 12/2024: Discussion Paper
IZA Discussion Paper No. 17549, 1272024: Discussion Paper
Link to our GitHub Directory and Toolkit: ABRS Toolkit
Media Coverage: BSoE Insights Article ; BSoE Insights Interview, LSE Policy Blog , der Makronom (in German)
Link to Presentation Slides: Slides
Abstract: Using a quantitative spatial model as a data-generating process, we explore how spatial frictions affect the measurement of quality of life. We find that under a canonical parameterization, mobility frictions---generated by idiosyncratic tastes and local ties---dominate trade frictions---generated by trade costs and non-tradable services---as a source of measurement error in the Rosen-Roback framework. This non-classical measurement error leads to a downward bias in estimates of the urban quality-of-life premium. Our application to Germany reveals that accounting for spatial frictions results in larger quality-of-life differences, different quality-of-life rankings, and an urban quality-of-life premium that exceeds the urban wage premium.
Spatial Policies and Heterogeneous Employment Responses, submitted
(with Marcel Henkel)
Berlin School of Economics Discussion Paper No. 63, 03/2025: Discussion Paper
SSRN Research Paper: Discussion Paper
BSoE Insights Interview
Abstract: This paper proposes that spatial policies improve economic outcomes by reducing barriers to supplying labour, with heterogeneous effects across demographic groups. Using quasi-experimental variation in Germany’s fiscal transfer system, we estimate higher employment elasticities for female workers, with the strongest impact in places where public childcare supply is smaller. We propose a quantitative spatial model incorporating location decisions and group-specific frictions to labour force participation. We establish that optimal spatial policy would not unambiguously direct resources to low-wage areas but additionally target regions with high labour supply elasticities, yielding substantial welfare and labour force gains in the aggregate. This paper argues that accounting for differential employment responses significantly alters optimal place-based policy design, highlighting a novel channel for addressing efficiency and equity concerns in ageing economies.
Quality of life in a dynamic spatial model
(with Gabriel M. Ahlfeldt, Duncan Roth and Tobias Seidel)
Link to latest paper version: Working Paper
CESifo Working Paper No. 8767, 12/2020: Discussion Paper
CEPR Discussion Paper No. 15594, 12/2020: Discussion Paper
CentrePiece Spring 2021: "Lockdown and the social life of big cities": Non-technical summary
LSE Blog: "Lockdown shows us it is not work that attracts us to big cities - but the social life" : Blog
Abstract: The economics literature on quality of life is rooted in the canonical frictionless spatial equilibrium framework. We show how to measure quality of life and evaluate quality-of-life policies within a dynamic spatial model with heterogeneous, imperfectly mobile, and forward-looking workers. We find that the canonical spatial equilibrium framework understates spatial quality-of-life differentials, the urban quality-of-life premium and the value of local non-marketed goods. Unlike the canonical spatial equilibrium framework, a dynamic spatial model predicts local welfare effects that motivate many place-based policies seeking to improve quality of life.
Work in progress:
Expensive cities: The role of the supply side
(with Christian Helmers and Felix Weinhardt)
Older Papers:
The stationary spatial equilibrium with migration costs
(with Gabriel M. Ahlfeldt, Duncan Roth and Tobias Seidel)
Note: This paper precedes the paper "Quality of life in a dynamic spatial model". Its dynamic, spatial model is discussed in detail in the current discussion paper version of "Quality of life in a dynamic spatial model".
The Role of Local Public Goods for Gender Gaps in the Spatial Economy
(with Marcel Henkel)
CRED Research Paper No. 33: Discussion Paper
Note: This paper precedes the current working paper "Spatial Policies and Heterogeneous Employment Responses".